If a worker developed a serious work-related illness and no insurer could be identified, the individual would be paid compensation by ELIB. Currently in such circumstances individuals receive no compensation.

Construction union Ucatt, which has regularly lobbied the government for the establishment of the fund, said the consultation was “excellent news”.

Alan Ritchie, general secretary, said: “Far too often workers develop life-threatening illnesses because employers have failed to provide adequate protection from harmful substances. If a worker’s health is ruined they deserve compensation. By establishing ELIB, the government will ensure this occurs.”